Section 12 in The Punjab Tax on Luxuries Act, 2009
12. Security from proprietors.
(1)Every proprietor applying for registration under this Act, shall furnish a security of rupees fifty thousand in such manner, as may be prescribed, for securing proper and timely payment of tax or any other sum, payable by him under this Act.(2)The Commissioner may, on an application, made to him by the proprietor for release, discharge or refund of security, furnished by him under sub-section (1), order the release, discharge or refund of the whole or any part thereof, if the same is not required.(3)Where it appears expedient to the Commissioner so to do, for proper realisation of tax, payable under this Act, he may, at any time while such registration is in force, by an order in writing and for the reasons, to be recorded therein, require the proprietor to furnish within such time, as may be specified in the order and in the prescribed manner, such additional security, not exceeding rupees two lac in addition to the security, already furnished under sub-section (1), as may be specified in the order for the aforesaid purpose:Provided that no proprietor shall be required to furnish any additional security under this sub-section, unless he has been given an opportunity of being heard.(4)The Commissioner shall not retain the security, furnished by a proprietor, if the registration of such proprietor has been cancelled and nothing remains due against him.(5)The Commissioner may, by an order in writing, for good and sufficient cause, forfeit the whole or any part of the security or additional security, furnished by a proprietor for recovery of any amount of tax or penalty, due or payable by him under this Act:Provided that no order shall be made under this sub-section without giving the proprietor an opportunity of being heard.(6)In case, the security is rendered insufficient because of the order made under sub-section (5), the proprietor shall furnish further security to make up for the amount, which has fallen short in such manner, as may be prescribed and within such time, as may be specified.Chapter-IV Returns, Assessment, Payment, Recovery and Collection of tax
